Agenda item

To consider a report of the Cabinet Member for Reform & Governance.

The Cabinet have been preparing its medium term strategy in response to its medium term financial plan. The latest update was presented in October. This frames the choices the Council will make about its budget both next year and in future years aligned to five key themes:

·         Getting more out of our spending;

·         Improving citizen experience;

·         Making sure we have the right property in the right places;

·         Sharing services with other organisations;

·         Enabling an organisation fit for the future.

This latest update is presented to scrutiny for consideration and is comprised of:

·           An overview report summarising the strategy and budget choices;

·           Appendix for each theme which outlines the strategic direction and ambition for each theme as well as a suite of proposals for 2019/20.

The Scrutiny Committee is invited to:-

·         comment upon the strategic direction of travel outlined in the overall report and across the five themes; and

·         comment on the report and the proposals presented within the report relevant to the remit of the Scrutiny Committee.

Officer contact: Holly Rae, 0161 474 3014, holly.rae@stockport.gov.uk

The Leader of the Council and the Cabinet Member for Reform & Governance submitted a report (copies of which had been circulated) seeking the views of the Scrutiny Committee in respect to the strategic direction of travel outlined in the overall report and across the five themes and to comment specifically on the proposals presented in the report relevant to the remit of the Scrutiny Committee.

The following comments were made/ issues raised:-

·         Reference was made to questions at the recent Council Meeting in relation to changes to Area Committee delegations and to references in in the report to a cross-party working group to discuss the proposals. It was stated that it would be helpful for the group to consider a wider review of the business programme, but stressed that such a group should be given proposals from the Cabinet to consider rather than for them to co-design proposals for change. Concern was expressed about any loss of powers and responsibilities by area committees.

·         In relation to the proposals around Communications it was queried why so much of the current workload related to GMCA functions. In response it was clarified that each local authority would provide support to its leader and their GMCA portfolio area although there was scope for the GMCA to take on more of the cost of this activity.

·         A number of councillors expressed concern about proposals to cease publication and distribution of the waste and recycling collection timetable for residents as they felt this was a false economy and would lead to an increase in problems with presentation of bins for collection.

·         It was commented that the proposals were conservative on income but ‘bullish’ in relation to expenditure and it was queried whether an increase in Council Tax was necessary, given that Stockport had the highest rate of Council Tax in Greater Manchester. In response it was stated that caution on income was prudent given its unpredictability. While a balanced budget could be proposed this year without a Council Tax increase it would require larger increases in future years or increase the overall savings requirement in the future. It was not the belief of the Cabinet that the funding gap could be adequately bridged without an increase. Stockport’s Council Tax rates was reflective of it historic underfunding and the Council continued to be one of the lowest spending authorities in Greater Manchester.

·         It was commented that while increasing Council Tax would impact the poorest most acutely, this should be seen in the context of increasing demand on services that were hidden from most residents and there was a need to protect the most vulnerable in our community.

·         Clarification was sought on the meaning of financial self-sufficiency in the context of the Council. In response it was stated that by 2020 the Revenue Support Grant from the Government to the Council would no longer be provided (previously having been one third of Council resources) so that the Council’s spending power would be from Council Tax, retained Business Rates and other locally generated income. It was hoped that the next Comprehensive Spending Review would make provision for a long term solution to local government financing.

·         Further information was sought on proposals for the Council’s companies, TLC and Stockport Homes, and comment was made that these bodies were often performing better than the Council in particular areas. In response it was stated that it was important to review contractual arrangements with these organisations to ensure they were aligned with other Council priorities and areas of activity in order to avoid having to make reductions in service quality in the future. Caution was advised about direct comparisons with these organisations and there were factors affect performance that were unique to each organisation.

RESOLVED – That the report be noted.